The global industrial furnaces market was valued at USD 10,261.7 million in 2024 and is projected to reach USD 10.69 billion by 2025, marking a year-over-year growth rate of 4.2%. From 2025 to 2035, the market is forecast to expand at a compound annual growth rate (CAGR) of 4.8%, ultimately reaching USD 17.11 billion.
This growth is supported by expanding applications across automotive, aerospace, metallurgy, electronics, and ceramics, where controlled high-temperature processing is fundamental to product quality and performance.
Industrial furnaces are vital for thermal processes such as annealing, sintering, forging, tempering, and smelting, which are key to transforming raw materials into engineered components. As advanced material demand grows-particularly for high-strength alloys and precision ceramics-manufacturers are investing in modern furnace technologies that offer improved thermal efficiency, accuracy, and production throughput.
A major trend shaping the industry is the shift toward electric industrial furnaces, driven by global decarbonization goals and environmental compliance mandates. These systems offer lower emissions and better compatibility with renewable energy integration, supporting industrial sustainability efforts. Emerging innovations in furnace insulation, predictive maintenance, AI-based temperature control, and IoT-enabled monitoring are also aligning the industry with Industry 4.0 standards.
Asia Pacific continues to lead the market, propelled by robust manufacturing growth in China, India, and Southeast Asia, while North America and Europe focus on retrofitting aging furnace fleets to meet stricter emission standards and improve operational efficiency. The combined effect of greenfield investments and technology upgrades is sustaining global demand across new and existing facilities.
In a 2024 industry statement, SMS Group, a global metallurgical technology provider, emphasized: “Innovative furnace technologies are central to sustainable metals production. We are engineering solutions that reduce emissions and boost thermal efficiency across heavy industry.”
With rising industrial automation, increasing focus on energy conservation, and growing adoption of digitally controlled furnace systems, the industrial furnaces market is set for strong and sustainable growth over the next decade.
Key Industry Attributes
| Attribute | Detail |
|---|---|
| Industry Size (2025) | USD 10.69 billion |
| Industry Size (2035) | USD 17.11 billion |
| CAGR (2025 to 2035) | 4.8% |
The table below presents the annual growth rates of the global industrial furnaces industry from 2025 to 2035. With a base year of 2024 extending to the current year 2025, the report examines how the sector's growth trajectory evolves from the first half of the year (January to June, H1) to the second half (July to December, H2). This analysis offers stakeholders insights into the industry's performance over time, highlighting potential developments that may emerge.
These figures indicate the growth of the sector in each half year, between the years 2024 and 2025. The industry is expected to grow at a CAGR of 4.5% in H1-2024. In H2, the growth rate increases.
| Particular | Value CAGR |
|---|---|
| H1 (2024 to 2034) | 4.5% |
| H2 (2024 to 2034) | 4.9% |
| H1 (2025 to 2035) | 4.6% |
| H2 (2025 to 2035) | 5.0% |
Moving into the subsequent period, from H1 2025 to H2 2025, the CAGR is projected to slightly decrease to 4.6% in the first half and relatively increase to 5.0% in the second half. In the first half (H1), the sector saw an increase of 10 BPS while in the second half (H2), there was a slight increase of 10 BPS.
Gas-fired furnaces lead with a 39.8% share, while continuous furnaces dominate with 58.1%, fueled by the demand for energy efficiency, consistent temperature control, and high-volume production. Industrial growth in metallurgy, ceramics, and advanced materials supports adoption across automotive, aerospace, and manufacturing sectors globally.
Gas-fired furnaces are projected to hold the largest share in the industrial furnace market, accounting for 39.8% in 2025. These systems are widely preferred across metal processing, ceramics, and heat treatment sectors due to their cost-effectiveness, rapid heating, and consistent temperature control. Natural gas availability, lower fuel costs, and cleaner combustion compared to oil-fired alternatives further contribute to their widespread adoption.
Gas-fired furnaces are commonly deployed in steel plants, forging operations, and non-ferrous metal industries for applications including annealing, carburizing, sintering, and melting. Their adaptability to diverse thermal profiles makes them a reliable choice for batch and continuous operations alike. Manufacturers such as Thermcraft, NUTEC Bickley, and SECO/WARWICK are investing in low-NOx burner technologies and energy recovery systems to enhance combustion efficiency and reduce emissions.
With increasing emphasis on energy efficiency, operational cost reduction, and emission compliance, gas-fired industrial furnaces continue to remain a foundational technology in thermal processing. Global infrastructure growth, especially in Asia-Pacific, further amplifies their relevance in expanding industrial applications.
Continuous furnaces are expected to dominate the market by operation type, capturing a 58.1% share in 2025. These systems enable uninterrupted thermal processing, making them ideal for high-volume manufacturing in automotive, electronics, and metallurgy sectors. Unlike batch furnaces, continuous models ensure uniform temperature distribution, reduced cycle times, and improved product quality through consistent thermal exposure.
These furnaces are commonly used for processes such as brazing, sintering, annealing, and heat treatment of components that require strict quality control and repeatability. Their compatibility with conveyor systems and automation platforms also makes them a preferred choice in Industry 4.0-compliant manufacturing setups. Companies like Ipsen, CAN-ENG Furnaces, and Harper International are integrating digital controls and advanced insulation technologies to optimize process efficiency and energy use.
The demand for continuous furnaces is further supported by rising productivity requirements, space optimization goals, and increased adoption of lean manufacturing techniques. As industries prioritize throughput, safety, and precision, continuous furnace systems are becoming essential to modern, scalable production environments.
Growing Demand for Energy-Efficient Furnaces
The global demand for energy-efficient furnaces is rapidly increasing, driven by the need to combat climate change and adhere to stringent environmental regulations. Across major industrial regions, manufacturers are transitioning from high-energy-consuming furnaces to more efficient alternatives without compromising production capacity.
In 2023, global steel production reached approximately 1.8 billion metric tons, reflecting a slight decline of 0.8% YoY compared to 2022. This underscores the growing focus on efficiency and sustainability in the sector, with Electric Arc Furnaces (EAFs) playing a crucial role in optimizing production while meeting environmental compliance.
Energy-efficient furnaces, such as EAFs, are increasingly preferred in the steel manufacturing industry due to their ability to significantly reduce energy consumption and greenhouse gas emissions compared to conventional blast furnaces.
Industries worldwide are heavily investing in advanced furnace technologies that align with cost-saving strategies and ecological obligations, supporting a shift toward sustainable manufacturing practices globally.
The Expansion of the Automotive Industry in Europe
The expansion of the automotive industry in Europe, especially about electric cars (EV) is one of the driving forces that led to growth in the industrial furnaces across Europe.
The increased production of EVs in such as Germany and France is leading to a higher demand for special-purpose. Such types of furnaces are significant for heat treatment during the production of battery cells, electric motors, and lightweight aluminum parts. Due to this reason, more advanced furnaces are being produced to accommodate the needs of these kinds of vehicles.
In 2023, Stellantis launched a €2 billion electric vehicle battery plant in Italy. This fact implies that the automobile industry is committed to scaling up EV production hence increasing demand for modern industrial furnaces.
These kinds of furnaces are necessary because they ensure that various components necessary for material proper functioning and safety of an EV have required quality and durability thus further pushing forward.
Growing Trend of Strategic Mergers and Acquisitions.
The industrial furnace is witnessing a significant global trend of strategic mergers and acquisitions (M&A). Companies are increasingly pursuing M&A to strengthen their presence, expand product offerings, and access advanced technologies.
This trend is driven by the need to achieve economies of scale, enhance competitiveness, and leverage synergies between complementary businesses.Strategic mergers enable companies to consolidate resources and capabilities, allowing them to deliver a wider range of furnace solutions and services to customers.
Acquisitions of innovative startups or niche players provide established firms with access to cutting-edge technologies and specialized expertise, fostering innovation and differentiation.
Ipsen, a leader in heat treatment technologies, merged with ALD Vacuum Technologies to create a comprehensive solutions provider in vacuum and atmosphere heat treatment. This collaboration combines Ipsen’s furnace manufacturing expertise with ALD’s advanced vacuum technology, resulting in highly efficient and innovative products.
Increasing Demand for Customization in Industrial Furnaces
The customized furnace market demand is increasing as companies try to meet specific production requirements, especially in some specialized industries such as aerospace, automotive and electronics.
These sectors employ exact material characteristics and process specifications that necessitate tailor-made furnaces. Moreover, industrial furnaces are now sought which are flexible and scalable.
Manufacturing companies need equipment that can be easily modified or expanded according to the changes in the product specification or fluctuations in production volume. This enables for efficient operations and quick response to the demands thus improving overall productivity and competitiveness.
That is why suppliers of industrial furnaces are increasingly focused on developing versatile solutions that are adaptable to changing needs, thereby supporting dynamic production environments of current industries.
In 2024, Tenova, a leading furnace manufacturer, introduced a new hydrogen-based furnace technology specifically designed for the steel industry. This technology allows steel producers to replace natural gas with hydrogen, significantly reducing CO₂ emissions during the steelmaking process.
Such innovations are gaining traction as industries seek to align with EU sustainability goals, making decarbonization a central focus of industrial furnace development and adoption across various sectors, including metallurgy, automotive, and chemical processing.
Tier 1 companies include industry leaders with annual revenues exceeding USD 100 million. These companies are currently capturing a significant share of 20% to 25%. These frontrunners are characterized by high production capacity and a wide product portfolio. They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base.
The firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within this tier I players include Danieli Group, SECO/WARWICK Group , ECM Technologies, Ebner Industrieofenbau GmbH, Tenova S.p.A , ANDRITZ Aand Others.
Tier 2 companies encompass most of the small-scale enterprises operating within the regional sphere and catering to specialized needs with revenues between USD 30-100 million. These businesses are notably focused on meeting local demand and are hence categorized within the Tier 2 segment. They are small-scale participants with limited geographical presence.
In this context, Tier 2 is acknowledged as an informal sector, indicating a segment distinguished by a lack of extensive organization and formal structure in comparison to the structured one. Tier II Players such as Aichelin Group, Lindberg/MPH, Primetals Technologies, Grieve Corporation and others have been considered in this tier where they are projected to account for 35-40% of the overall market.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche having revenue below USD 30 million. These companies are notably oriented towards fulfilling local demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. The manufacturers such as Tier III Players such as Primetals Technologies, Grieve Corporation, Wellman Furnaces, Inductotherm Group , BTU International and others are expected to hold 30-35% of the share.
The below table shows the estimated growth rates of the top three countries. India, China, and Japan are set to record higher CAGRs of 5.1%, 4.7%, and 4.4% respectively, through 2035.
| Countries | CAGR 2025 to 2035 |
|---|---|
| India | 5.1% |
| China | 4.7% |
| Japan | 4.1% |
| UK | 3.5% |
| USA | 3.2% |
The Germany Industrial Furnace is poised to exhibit a CAGR of 4.7% during the assessment period. It is expected to attain a valuation of USD 2,351.9 Million by 2035.
China's leadership as the world’s largest steel producer, producing over 1 billion metric tons annually, underpins its demand for industrial furnaces. The nation’s rapid industrialization and investments in cutting-edge manufacturing processes, including automation and smart technologies, are driving furnace growth. Strict environmental regulations are accelerating the shift toward energy-efficient and low-emission furnaces, including electric arc furnaces.
China’s rapid industrialization and investments in automation and smart technologies play a vital role in fueling the demand for advanced industrial furnaces. With the government's strong push for the implementation of Industry 4.0 and smart manufacturing, industries are increasingly adopting automated and data-driven furnace systems to improve efficiency, reduce downtime, and enhance overall production quality.
India’s growth is significantly driven by the booming automotive sector, with the country ranking as the fourth-largest automobile producer globally in 2022, manufacturing over 4.5 million vehicles. This demand necessitates advanced furnace technologies for applications like forging, heat treatment, and metalworking.
India’s push toward renewable energy investments is propelling the adoption of industrial furnaces in solar panel manufacturing and wind turbine component production. The nation’s emphasis on self-reliance in manufacturing, coupled with government incentives for clean energy and industrial innovation, is spurring demand for energy-efficient and sustainable furnace solutions.
Sales of industrial furnaces in India are projected to soar at a CAGR of around 5.9% during the assessment period. The total valuation in the country is anticipated to reach USD 1,068.7 Million by 2035.
The UK industrial furnace size is projected to reach USD 321.5 Million by 2035. Over the assessment period, industrial furnace in the United Kingdom is set to rise at 3.5% CAGR
The industrial furnace is experiencing growth due to a strong focus on sustainable manufacturing practices and significant industrial upgrades. In the UK, the government prioritizes reduced carbon emissions and better energy efficiency across industries. In order to achieve “Net Zero” by 2050 in the UK, there will be need for more efficient and environmentally friendly new generation of industrial furnaces that comply with regulations.
Recent initiatives include the UK’s investment in modernizing steel production facilities, such as Tata Steel’s plan to implement advanced, energy-efficient furnace technologies at its Port Talbot plant.
Also, demand for state-of-the-art industrial furnaces has increased due to the adoption of green manufacturing approaches by car manufacturers and metal processors among others. These advances are helping to develop cleaner technologies which are more efficient hence promoting growth of the whole industry.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the.
A few key players in the industrial furnace are actively enhancing capabilities and resources to cater to the growing demand for the compound across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster resource base.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2035, thereby making it more competitive.
Key companies are investing in continuous research for producing new products and increasing their production capacity to meet end-user demand. They are also showing an inclination toward adopting strategies, including acquisitions, partnerships, mergers, and facility expansions to strengthen their footprint.
Industry Updates
| Report Attributes | Details |
|---|---|
| Market Size (2024) | USD 10.26 billion |
| Current Total Market Size (2025) | USD 10.69 billion |
| Projected Market Size (2035) | USD 17.11 billion |
| CAGR (2025 to 2035) | 4.8% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Quantitative Units | USD billion for value and thousand units for volume |
| Furnace Types Analyzed (Segment 1) | Gas-Fired Furnaces, Electric Furnaces (Arc, Induction, Resistance), Oil-Fired Furnaces, Dual-Fuel Furnaces |
| Operation Types Analyzed (Segment 2) | Batch Furnaces, Continuous Furnaces |
| Material Processed (Segment 3) | Metals (Steel, Aluminum, Copper, Other Alloys), Non-Metals (Ceramics, Glass, Carbon Composites) |
| Applications Covered | Metal Production (Smelting, Refining, Heat Treatment), Ceramic and Glass Manufacturing, Petrochemical & Chemical Processing (Catalyst Activation, Hydrocarbon Reforming), Powder Metallurgy, Others |
| End Use Industries Covered | Automotive Manufacturing, Oil and Gas, Metallurgy, Electronics, Food Processing, Others |
| Regions Covered | North America; Latin America; Western Europe; Eastern Europe; East Asia; South Asia; Middle East and Africa |
| Countries Covered | United States, Germany, China, India, Japan, United Kingdom, Brazil, Mexico, South Korea, Saudi Arabia |
| Key Players Influencing the Market | ANDRITZ A, Danieli Group, Ispen, Tenova S.p.A, Primetals Technologies, Aichelin Group, SECO/WARWICK Group, Ebner Industrieofenbau GmbH, Lindberg/MPH, NUTEC Bickley, Inductotherm Group |
| Additional Attributes | A manufacturer of industrial furnaces would want to know dollar sales by type, share by operation mode, adoption in metallurgy and oil & gas, regional expansion opportunities, and demand for electric furnaces amid industrial decarbonization goals. |
Furnace Types included in the study are Gas-Fired Furnaces, Electric Furnaces (Arc Furnaces, Induction Furnaces, and Resistance Furnaces), Oil-Fired Furnaces and Dual-Fuel Furnaces.
Operation Type included in the study are Batch Furnaces and Continuous Furnaces.
Material Processed included in the study are Metals (Steel, Aluminum, Copper, Other Alloys) and Non-Metals (Ceramics, Glass, and Carbon Composites)
Application included in the study are Metal Production (Smelting, Refining, and Heat Treatment), Ceramic and Glass Manufacturing, Petrochemical and Chemical Processing (Catalyst Activation, Hydrocarbon Reforming), Powder Metallurgy and Others.
End Use segments included in the study are Automotive Manufacturing, Oil and Gas, Metallurgy, Electronics, Food Processing, and Others.
The report covers key regions, including North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, and the Middle East and Africa (MEA).
The global market was valued at USD 10,261.7 million in 2024.
The global market is set to reach USD 10.69 billion in 2025.
Global demand is anticipated to rise at 4.8% CAGR.
The industry is projected to reach USD 17.11 billion by 2035.
ANDRITZ A, Danieli Group, Inc., Ispen. Tenova S.p.Aand Primetals Technologies are prominent companies.
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